Crypto forensics firm Chainalysis announced a significant workforce reduction of 15%, impacting approximately 135 employees.
“This week we announced that we made the difficult decision to part ways with 15% of Chainalysis employees,” a spokesperson for Chainanalysis told Decrypt. “We are very focused on growing efficiently and, due to market conditions, believe it necessary to reduce our expenses at this time. We remain committed to our mission to build trust in blockchains among government agencies, financial institutions, and cryptocurrency businesses.”
This isn’t the first workforce adjustment for Chainalysis this year. They had earlier reduced their staff by 5% in February.
The firm indicated that it plans to transition from the commercial market, gravitating more towards government contracting, which is perceived as more stable.
As of today, around 70% of the firm’s revenue is generated from the public sector, as reported by Forbes.
Chainalysis notably collaborates with respected public sector agencies, including the FBI and the U.S. Securities and Exchange Commission (SEC).
Founded in 2014, Chainalysis quickly became a specialist in tracking crypto transactions and identifying the parties involved. Their primary mission is to combat money laundering and various cybercrimes.
Even after securing $170 million in a Series F funding round in May 2022, Chainalysis finds itself adapting to the persistent bear market, as many other crypto companies.
Prominent players like Huobi, Coinbase, Crypto.com, and Bittrex have also reported staff reductions this year.